Nippon Steel Shares Rise After U.S. Steel Sale Is Approved

Nippon Steel shares rose on Monday after U.S. President Donald Trump approved its $14.9 billion bid for U.S. Steel, clearing a key hurdle in the 18-month pursuit and granting the Japanese firm access to a critical growth market. Yuka Obayashi and Noriyuki Hirata reported for Reuters.

Nippon Steel also confirmed it will acquire 100% of U.S. Steel’s ordinary shares. I Photo: 大分帰省中 Wikimedia Commons

The approval capped a tumultuous process marked by union resistance and two national security reviews.

Shares of Nippon Steel, the world’s fourth-largest steelmaker, climbed 3% to 2,915 yen by the mid-day break, after being untraded earlier in the day due to a flood of buy orders.

The stock outperformed Tokyo’s benchmark Nikkei 225, which rose about 1%.

Trump last week signed an executive order allowing the acquisition to proceed, contingent on an agreement with the U.S. Treasury Department to address national security concerns.

The two companies subsequently announced they had signed the agreement, effectively clearing the way for the deal. The deal includes $11 billion in new investments by 2028 and commitments on governance, production, and trade.

Nippon Steel also confirmed it will acquire 100% of U.S. Steel’s ordinary shares. “Investors have welcomed the resolution of uncertainty surrounding the deal,” said Shinichiro Ozaki, senior analyst at Daiwa Securities.